EUR/USD today: the euro remains under the pressure against the American dollar

On Monday, the EUR/USD pair finished the correction phase after rising on Thursday and formed a high at 1.1260, from which we can expect a resumption of decline in the future. From the start of the day, the pair has been trading in lateral dynamics, forming a flat from 1.1260 to 1.1230. This is due to the lack of a common mood for the US dollar.

Events for today:

• At 16:45 – PMI will be released in the service sector (Apr) USA.
• At 17:00 – new houses sales (m/m) (March) in the United States will be released.
• At 23:30 – API weekly crude oil reserves will be announced in the United States.

The day today is very full of the US data, but the main driver of the market will be stock indices and general sentiment. Thus, the negative opening of trading on European stock indices increased the pressure on the American dollat.

The EUR/USD pair is trading in the reversal zone 1.1260-1.1230, from which you can expect to overcome the decline, and the test of resistance levels. The current market dynamics indicate a strengthening of the US dollar despite attempts of correction. This will return this pair below the level of 1.1230-40 and will open the way to support levels: 1.1200 and 1.1180. Resistance is located at the levels: 1.1260 and 1.1280, updating of which will postpone the expectations to decline.

Read also: “Divergence – common mistakes in trading”

Hanzenko Anton

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